Ch 12
For a given level of technology, we should expect an increase in labor productivity within a nation when there is an increase in each of the following except
labor
When a nation has very little income per person,
it has the potential to grow relatively quickly due to the catch up effect
Once a country is wealthy,
it may be harder for it to grow quickly because of the diminishing returns to capital
The world's rich countries, such as the United States and Germany, have income per person that is about _____ times income per person in the world's poor countries, such as Pakistan and India.
10
Over the past century, real GDP per person in the United States has grown about _____ percent per year, meaning it has roughly doubled every _____ years.
2, 35
If real income per person in 2018 is $18,073 and real income per person in 2019 is $18,635, what is the growth rate of real income over this period?
3.1 percent
Which of the following policies would lead to greater productivity in the printing industry? Check all that apply.
Encouraging saving by allowing workers to set aside a portion of their earnings in tax free retirement accounts Subsidizing research and development into new printing technologies
When the Japanese car maker Toyota expands one of its car factories in the United States, what is the likely impact of this event on the gross domestic product and gross national product of the United States?
GDP and GNP both rise but GDP rises by more
Which of the following expenditures to enhance productivity is most likely to emit a positive externality?
Susan pays her college tuition
Which of the following is an example of foreign portfolio investment?
Toyota buys stock in Ford, and Ford uses the proceeds to build a new plant in Michigan
The opportunity cost of growth is
a reduction in current consumption
If Mazda builds a new plant in Illinois,
a. in the future US GDP will rise more than US GNP
Thomas Malthus argued that
an ever-increasing population is constrained only by the food supply, resulting in chronic famines
Over the past century, ________ has experienced particularly strong growth, and ________ has experienced particularly weak growth.
japan, the united kingdom
If a production function exhibits constant returns to scale,
doubling all of the inputs doubles output
Because capital is subject to diminishing returns, higher saving and investment do not lead to higher
growth in the long run
Which of the following government policies is least likely to increase growth in Africa?
increase restrictions on the importing of Japanese automobiles and electronics
Increases in the amount of human capital in the economy tend to ________ real incomes because they increase the ________ of labor.
increase, productivity
To increase growth, governments should do all of the following except
nationalize major industries
Most economists are ________ that natural resources will eventually limit economic growth. As evidence, they note that the prices of most natural resources, adjusted for overall inflation, have tended to ________ over time.
not concerned, fall
Our standard of living is most closely related to
our productivity because our income is equal to what we produce
Thomas Robert Malthus believed that population growth would
put stress on the economy's ability to produce food, dooming humans to remain in poverty.
A reasonable measure of the standard of living in a country is
real income per person
China, Japan, and Brazil are growing very quickly because
they save and invest an unusually high percentage of their real income